1-1     By:  Walker (Senate Sponsor - Staples)                 H.B. No. 742
 1-2           (In the Senate - Received from the House April 2, 2001;
 1-3     April 3, 2001, read first time and referred to Committee on Natural
 1-4     Resources; April 30, 2001, reported favorably by the following
 1-5     vote:  Yeas 4, Nays 0; April 30, 2001, sent to printer.)
 1-6                            A BILL TO BE ENTITLED
 1-7                                   AN ACT
 1-8     relating to the presumed validity of a district act or proceeding. 
 1-9           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-10           SECTION 1.  Subchapter D, Chapter 36, Water Code, is amended
1-11     by adding Section 36.124 to read as follows:
1-12           Sec. 36.124.  DISTRICT ACT OR PROCEEDING PRESUMED VALID.  (a)
1-13     A governmental act or proceeding of a district is conclusively
1-14     presumed, as of the date it occurred, valid and to have occurred in
1-15     accordance with all applicable statutes and rules if:
1-16                 (1)  the third anniversary of the effective date of the
1-17     act or proceeding has expired; and
1-18                 (2)  a lawsuit to annul or invalidate the act or
1-19     proceeding has not been filed on or before that third anniversary. 
1-20           (b)  This section does not apply to:
1-21                 (1)  an act or proceeding that was void at the time it
1-22     occurred;
1-23                 (2)  an act or proceeding that, under a statute of this
1-24     state or the United States, was a misdemeanor or felony at the time
1-25     the act or proceeding occurred;
1-26                 (3)  a rule that, at the time it was passed, was
1-27     preempted by a statute of this state or the United States,
1-28     including Section 1.06 or 109.57, Alcoholic Beverage Code; or
1-29                 (4)  a matter that on the effective date of this
1-30     section:
1-31                       (A)  is involved in litigation if the litigation
1-32     ultimately results in the matter being held invalid by a final
1-33     judgment of a court; or
1-34                       (B)  has been held invalid by a final judgment of
1-35     a court.
1-36           SECTION 2.  Subchapter H, Chapter 49, Water Code, is amended
1-37     by adding Section 49.234 to read as follows:
1-38           Sec. 49.234.  DISTRICT ACT OR PROCEEDING PRESUMED VALID. (a)
1-39     A governmental act or proceeding of a district is conclusively
1-40     presumed, as of the date it occurred, valid and to have occurred in
1-41     accordance with all applicable statutes and rules if:
1-42                 (1)  the third anniversary of the effective date of the
1-43     act or proceeding has expired; and
1-44                 (2)  a lawsuit to annul or invalidate the act or
1-45     proceeding has not been filed on or before that third anniversary. 
1-46           (b)  This section does not apply to:
1-47                 (1)  an act or proceeding that was void at the time it
1-48     occurred;
1-49                 (2)  an act or proceeding that, under a statute of this
1-50     state or the United States, was a misdemeanor or felony at the time
1-51     the act or proceeding occurred;
1-52                 (3)  a rule that, at the time it was passed, was
1-53     preempted by a statute of this state or the United States,
1-54     including Section 1.06 or 109.57, Alcoholic Beverage Code; or
1-55                 (4)  a matter that on the effective date of this
1-56     section:
1-57                       (A)  is involved in litigation if the litigation
1-58     ultimately results in the matter being held invalid by a final
1-59     judgment of a court; or
1-60                       (B)  has been held invalid by a final judgment of
1-61     a court.
1-62           SECTION 3.  This Act takes effect immediately if it receives
1-63     a vote of two-thirds of all members elected to each house, as
1-64     provided by Section 39, Article III, Texas Constitution.  If this
 2-1     Act does not receive the vote necessary for immediate effect, this
 2-2     Act takes effect September 1, 2001.
 2-3                                  * * * * *